Most people have long–term goals:
buying a home, starting a business,
sending the kids to college, enjoying
a comfortable retirement. But too
often they delay taking the steps
necessary to turn their dreams into
realities.

In today's fast–paced world, many
people put off important decisions
until another day. Unfortunately, by
the time they realize the urgent need
to save money, it's often too late to
fully realize those goals.

There are plenty of excuses for not
setting financial goals: "I don't
understand investing." "I don't have
the time to plan." "I can't afford to
invest." The truth of the matter is,
you can't afford to delay.

Time Is on Your Side
Fortunately, early planning can help
you maximize the power of time and
reach your financial goals. It's simple:
The sooner you begin to save for
your future financial needs, the more
wealth you can accumulate.

Although the idea is straightforward
and logical, most people fail to
recognize the enormous increase in
value that can result from beginning
to save early. The best way to
demonstrate the power of time is
by way of example. Let's look at the
different approaches to investing
taken by twin brothers, Ken and Ray.

Ken Started to Save Early
Looking to build a large nest egg for
his retirement, Ken chose to invest
$1,000 per year in an Individual
Retirement Annuity (an IRA funded
by an annuity), starting at age 30. He
continued his payments for 10 years
until age 40, earning an average of
6% per year on his investments.1 At
age 40, he stopped contributing to
the IRA, but — and here's the key —
he left his $11,000 of contributions
in the account, plus earnings, until
retirement at age 65.

Ray Started to Save Late
Ray, the second twin, was also a
bright guy who saw the need to
put money away for his retirement.
But he was a bit of a procrastinator
and didn't begin implementing his
investment plan until he was 45. At
that point he began investing $1,000
a year in an IRA. He also averaged a
6% annual return, but continued to
make $1,000 investments for 20
years until he retired at age 65. His
contributions over the years totaled
$20,000.

The Dramatic Difference Compound Interest Can Make
Given the fact that Ray contributed
$9,000 more than Ken, you might
expect that Ray would have a
significantly greater total for
retirement at age 65. Surprisingly,
just the opposite is true.

Assuming the tax–deferred IRA of
each twin earned 6% a year, the
account balance for Ken at age 65
would be $68,117, while Ray would
have only $38,993. The hypothetical
chart vividly illustrates the sizable
difference in the accumulated wealth
of the brothers.

"Earnings Earn Earnings"
Ray was on the right track. He
invested steadily and wisely, earning
good returns. But he made a big
mistake: he got a late start. So,
though he invested almost twice the
amount his brother Ken did, he had
less money to enjoy at retirement.

Now look at his twin's experience.
By getting an earlier start, Ken
benefited from 15 more years of
compounded interest. Left to
accumulate in his account, the
earnings from his early years
earned additional returns.

It's Never Too Early for You to
Start Saving
Although today's responsibilities
may take up most of your time and
attention, it's important to consider
what you want to accomplish in the
future:

With a growing family, you may
need to buy your first home — or
one with more space.

You may want to launch your own
business, which could require
heavy start–up expenses.

With college tuition on the rise,
you may be facing another big
expense when your children are
ready for higher education.

You may need more money to
support the life style you want in
retirement — which may last 20 or
30 years or more.

Make Time Your Ally
Let time work to your advantage,
beginning now. Protect your family.
Plan for the future. Preserve your
assets. Prepare wisely for retirement.

For help with identifying and
accomplishing such financial goals,
contact your Representative today.

Note: The examples discussed above
are for informational and illustration
purposes only. They're not intended to
predict or guarantee the performance
of any insurance or financial product.

1 Six percent is for illustrative purposes only and is not intended to predict or guarantee the results of any
security product.